BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 636|
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THIRD READING
Bill No: AB 636
Author: Hall (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 11-0, 6/11/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Galgiani, Hernandez, Lieu, Padilla
SENATE APPROPRIATIONS COMMITTEE : 7-0, 6/24/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 75-0, 5/9/13 (Consent) - See last page for vote
SUBJECT : Alcoholic beverages: tied-house restrictions
SOURCE : Author
DIGEST : This bill permits, under specified conditions and
until January 1, 2016, the appearance of a person for the
purpose of providing autographs at an instructional event for
consumers that a winegrower, California winegrower's agent,
importer, or other specified parties conduct, or participate in,
that is held at a retailer's premises featuring wines produced
by or for the winegrower or, imported by the wine importer.
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ANALYSIS :
Existing law:
1.Provides for the licensing of individuals and businesses
associated with the manufacture, importation and sale of
alcoholic beverages in this state and the collection of
license fees.
2.Separates the alcoholic beverage industry into three component
parts, or tiers, of manufacturer (including breweries,
wineries and distilleries), wholesaler, and retailer (both
on-sale and off-sale). This is known as the "tied-house" law.
3.Permits, until January 1, 2016, the appearance of a person
employed or engaged by an authorized licensee at a promotional
event held at the premises of an off-sale retail licensee for
the purposes of providing autographs to consumers at the
event, subject to specified conditions.
4.Prohibits a winegrower, a California winegrower's agent,
importer, or other specified parties from providing a licensee
alcoholic beverages as a free good as a part of any sale or
transaction involving alcoholic beverages or furnishing
anything of value to a licensee for specified purposes.
Existing law excepts from this prohibition a winegrower,
California winegrower's agent, importer, or other specified
parties when conducting or participating in an instructional
event for consumers held at a retailer's premises featuring
wines produced by or for the winegrower or imported by the
importer, subject to specified conditions.
5.Defines an "on-sale" license as authorizing the sale of all
types of alcoholic beverages: namely, beer, wine and
distilled spirits, for consumption on the premises (such as at
a restaurant or bar). An "off-sale" license authorizes the
sale of all types of alcoholic beverages for consumption off
the premises in original, sealed containers.
6.Provides that a violation of any of the provisions of the ABC
Act, for which another penalty or punishment is not
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AB 636
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specifically provided, is a misdemeanor.
This bill permits, under specified conditions and until January
1, 2016, the appearance of a person for the purpose of providing
autographs at an instructional event for consumers that a
winegrower, California winegrower's agent, importer, or other
specified parties conduct, or participate in, that is held at a
retailer's premises featuring wines produced by or for the
winegrower or, imported by the wine importer. The conditions
that must be adhered to provide that (1) a fee is not charged,
(2) the event is less than four hours long, ( 3) autographs must
be given on items provided by the consumer, (4) advertising for
the event is limited, (5) the wholesaler does not contribute to
the costs of the event, and (6) the licensee notifies the
Department of Alcoholic Beverage Control (ABC) 30 days in
advance.
Prior Legislation
AB 2184 (Hall, Chapter 480, Statutes of 2012) created a new
tied-house exception in the ABC Act that authorizes, until
January 1, 2016, wine, beer and spirits producers to participate
in promotional events held at an off-sale retail licensed
location for the purpose of providing autographs on bottles or
other items to consumers.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, the Department
of ABC indicates the need for one PY (personnel year) annually
in the Trade Enforcement Unit at a cost of $98,000 (Special).
SUPPORT : (Verified 6/25/13)
Family Winemakers of California
Wine Institute
ARGUMENTS IN SUPPORT : The author's office notes that this
bill is a modest extension of AB 2184 (Hall). AB 636 simply
provides an opportunity for a consumer to obtain an autograph on
a bottle at an additional type of event, namely an instructional
"winemaker dinner" - conducted at a bona fide eating venue which
holds an on-sale license. The author's office emphasizes that
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existing law contains built-in safeguards. Wine producers are
expected to use this new marketing tool to build brand awareness
and loyalty.
ASSEMBLY FLOOR : 75-0, 5/9/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier,
Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray,
Grove, Hagman, Hall, Harkey, Roger Hernández, Jones,
Jones-Sawyer, Levine, Linder, Lowenthal, Maienschein, Mansoor,
Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,
Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel
Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone,
Ting, Torres, Wagner, Weber, Wieckowski, Wilk, Williams,
Yamada, John A. Pérez
NO VOTE RECORDED: Donnelly, Holden, Logue, Waldron, Vacancy
MW:ej 6/25/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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